RNS Number : 3392Y
Sound Oil PLC
08 September 2015

8 September 2015


Sound Oil plc

("Sound Oil" or the "Company")


Morocco Update: Tendrara Technical Evaluation and Rabat Office


Sound Oil, the Mediterranean focused upstream gas company, is pleased to announce the results of a technical evaluation of the onshore Tendrara licence, Morocco (the "Tendrara Licence") and provide an update on preparations for the forthcoming well.  The evaluation was completed by SLR Consulting Limited ("SLR").


Tendrara Technical Evaluation


As announced on 8 June 2015, the Company has agreed to farm in to the Tendrara Licence. Sound Oil will, on completion of the farm in, acquire a net working interest of 55% in, and operatorship of, the Tendrara Licence. Sound Oil's 55% working interest will be granted in two tranches, with an initial 37.5% awarded on completion of the farm in and the remaining 17.5% being granted once Sound Oil commits to a second exploration phase (which would include a second well).


SLR has estimated the following in relation to Sound Oil's working interest in the Tendrara Licence (net attributable based on a 55% working interest):


·    An existing gas discovery (TE-5/Lakbir structure) with Best Estimate Contingent Resources of 170.8 Bscf of gas (High Estimate of 490.6 Bscf and Low Estimate of 16.6 Bscf) and 0.47 MMbbl of condensate (High Estimate of 4.2 MMbbl and Low Estimate of 0.39 MMbbl);


·    22% chance of success for the Best Estimate Contingent Resource; and


·    Additional exploration Best Estimate Prospective Resource of 740.2 Bscf (2.4 Tcf High Estimate and 200 Bscf Low Estimate) across the remainder of the licence area.


At the Company's request, SLR has run an economic analysis using a number of gas price scenarios (with a constant US$75 per bbl condensate price). The risked Best Estimate NPV10 in respect of Sound Oil's net attributable interest in the TE-5/Lakbir structure at these gas prices, based on an existing 2013 development plan, is set out below.  These numbers exclude the exploration potential and associated volumes.




Eurocent per scm


US$ per mcf


Net attributable Best Estimate NPV10 Risked*




EUR 64.18 million



EUR 73.22 million



EUR 82.41 million



EUR 91.58 million



EUR 100.79 million


*The risked Best Estimate NPV10 values included above are arrived at by applying a chance of success/risk factor of 22% to unrisked Best Estimate NPV10 values.


Tendrara Operational Update


The Company is also pleased to announce that preparations for the forthcoming well at the Tendrara Licence are at an advanced stage. 


In anticipation of the drill, the Company has now opened an office in Rabat and has completed the recruitment of an in-country technical team.  The Moroccan team, led by the Company's Moroccan Managing Director, Luca Madeddu, now includes a Drilling Manager, a Permitting Liaison Manager and a Finance Manager.


James Parsons, Sound Oil's Chief Executive Officer commented:


"I am pleased to report that this evaluation validates the scale of both the existing gas discovery and the exploration upside at the Tendrara licence. We believe this asset provides a compelling risk / reward balance and a strong platform for further consolidation in country."



For further information please contact:


Vigo Communications - PR Adviser

Patrick d'Ancona

Chris McMahon


Tel: 44 (0)20 7016 9573

Sound Oil

James Parsons, Chief Executive Officer




Smith & Williamson - Nominated Adviser

Azhic Basirov

David Jones

Ben Jeynes


Tel: 44 (0)20 7131 4000

Cantor Fitzgerald Europe - Broker

Sarah Wharry

David Porter


Tel: 44 (0)20 7894 8896


The information contained in this announcement has been reviewed by Sound Oil's Moroccan Managing Director, Luca Madeddu, a qualified petroleum geologist.  NPV10 refers to a net present value at a discount rate of 10%; Bscf means billion standard cubic feet of gas; Tcf means trillion standard cubic feet of gas; bbl means barrel; MMbbl means million barrels. Best, High and Low case estimates refer to finding a given volume consistent with SPE (The Society of Petroleum Engineers) guidelines.

This information is provided by RNS
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